The Australian Renewable Energy Agency (ARENA) has announced $495,000 in funding to the Grid Innovation Hub at the Monash University.
A study will explore the integration of storage into energy markets, to design efficient incentives for energy storage investors and operators.
The Monash team hypothesises that market rules are hindering investment in energy storage, which is critical to the uptake of renewables.
The project scope aligns with the Energy Security Board (ESB) Post 2025 Electricity Market Design final report. The ESB recommended work on a longer term need for ‘day-ahead markets’ and development of an inertia spot market.
This model can help generators to:
- hedge against pricing and scheduling risks
- better meet forecast demand
- reduce uncertainty in real-time market prices
- provide clear price signals to demand side management providers.
If successful, the study will help outline market design solutions to improve the valuation of energy storage services to improve grid reliability and renewable energy uptake.
The findings will assist the Australian Energy Market Commission (AEMC) and other market bodies implement reforms to electricity markets and markets (or other frameworks) for essential system service provision.